**Cyprus Industry Sees Growth Amid Declining Exports**
Cyprus' industrial sector has shown resilience in recent months, with the Industrial Turnover Index increasing by 3.5% in May 2026, reaching a total of 148 units. This data, released by the Statistical Service of Cyprus (Cystat), indicates a positive trend for the first five months of the year, with a cumulative increase of 3.4% compared to the same period in 2025.
The Industrial Turnover Index is calculated using 2021 as the base year, allowing for a comparison of monthly turnover changes against the average monthly turnover recorded during that year. This metric is crucial for understanding the performance of various sectors within the industry.
Manufacturing has been the primary driver of this growth, with the manufacturing index reaching 151.4 units in May, reflecting an annual increase of 2.6%. Over the January to May period, manufacturing turnover rose by 3.5% year-on-year. Notably, the furniture sector, along with other manufacturing categories such as the repair and installation of machinery and equipment, experienced significant growth, with turnover surging by 14.6% in May, although it showed a slight decline of 1.9% over the five-month period.
Another strong performer within manufacturing was the production of wood and products made from wood and cork, excluding furniture, which saw a turnover increase of 9.9% in May and an impressive 20% growth over the five-month period. Basic metals and fabricated metal products also contributed to the positive trend, with a 7.3% increase in May and a 9.7% rise from January to May.
In the realm of refined petroleum products, chemicals, and pharmaceuticals, turnover rose by 6.9% in May, although the increase for the five-month period was more modest at 1.7%. Rubber and plastic products also saw gains, with a 3.3% increase in May and a 4.4% rise over the January to May period.
However, not all sectors within manufacturing shared this upward trajectory. The electronic and optical products and electrical equipment category remained relatively stable in May with a slight increase of 0.2%, but it recorded a significant cumulative decline of 9.8% over the first five months of the year. Other categories, such as food products, beverages, and tobacco, saw modest increases of 0.4% in May and 2.8% over the five-month period.
Conversely, several manufacturing sectors reported annual declines in May. Machinery and equipment, motor vehicles, and other transport equipment experienced a notable drop of 10.7% in May, although turnover remained up 3.7% for the January to May period. The paper and paper products sector declined by 3.2% in May and 2.5% over the five-month period, while other non-metallic mineral products fell by 2.6% in May but remained up 1.2% for the first five months. Textiles, wearing apparel, and leather products also saw a decline of 1.4% in May, despite cumulative growth of 2.5%.
Outside the manufacturing sector, the mining and quarrying industry recorded an annual increase of 2.1% in May, reaching an index of 183.2 units, with a cumulative rise of 1.9% for the January to May period. The water supply and materials recovery sectors, however, exhibited considerably stronger growth, with the index reaching 136.7 units. This sector rose by 13.8% in May and 8.8% over the five-month period, driven by a remarkable 24.5% increase in materials recovery and an 8.5% rise in water collection, treatment, and supply.
Electricity supply also saw growth, increasing by 6.1% in May, with the index standing at 131.2 units, and a rise of 1.6% for the first five months of the year.
While local sales have offset some of the weaknesses in exports, the export market index recorded a decline of 1% in May, standing at 135.1 units, and a cumulative decrease of 0.6% for the January to May period. In contrast, the local market index rose by 4.3% in May and 4.1% over the five-month period, highlighting the importance of domestic sales in supporting the overall industrial growth in Cyprus.
As the Cypriot industrial sector continues to navigate challenges, the recent data suggests a mixed landscape, with strong performance in certain areas offsetting declines in others. The focus on local sales may be a key strategy for sustaining growth in the coming months.